Prime retail investment corner sells under the hammer at a highly contested auction

A sought-after retail investment, located on a prime Thornbury corner, currently tenanted by Tradelink, a subsidiary of ASX Listed Fletcher Building Limited (ASX: FBU), has sold under the hammer for $3,355,000 and a yield of 4.35%.

The exclusive selling agents from Colliers, Andrew Ryan, Corey Vraca and Mitch Purcell, and transactional manager Greville Pabst received over 100 enquiries from local and offshore investors, also land banking developers were eager to pursue this opportunity due to the highly desirable Commercial 1 Zoning and allowable height.

Andrew Ryan, Associate Director at Colliers, said, “It was a highly contested auction that saw six bidders fight it out, and after 33 bids, it landed on the eventual sale price was $3,355,000. A strong result illustrating investors’ appetite when there is a quality tenant and high-quality real estate fundamentals.”

“The asset’s instant income stream of $146,000 per annum until 2028, with one further term of five years, saw many investors flock to the opportunity due to the highly coveted tenant, strong underlying real estate fundamentals and the favourable and flexible Commercial 1 Zoning.”

“Investors were immediately drawn to the well-structured lease and favourable holding income in a climate where investors are searching for security,” Corey Vraca, Colliers’ Associate Director explained. “The buyer was a local investor who took comfort in the considerable redevelopment potential of the 1,108 sqm site and considerable holding income.”

“The vendors have owned the property for over 35 years, and whilst they are sad to see it go, they are ecstatic with the solid result.”

316 St Georges Road, Thornbury, sits on a large corner land holding with considerable main road exposure via St Georges Road and benefits from a side street in Shaftesbury Parade, conveniently located with immediate access to public transport, just 7km from Melbourne CBD.